Bill Text: TX HB40 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to the exclusive jurisdiction of this state to regulate oil and gas operations in this state and the express preemption of local regulation of those operations.
Spectrum: Moderate Partisan Bill (Republican 71-8)
Status: (Passed) 2015-05-18 - Effective immediately [HB40 Detail]
Download: Texas-2015-HB40-Enrolled.html
| H.B. No. 40 | ||
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| relating to the exclusive jurisdiction of this state to regulate | ||
| oil and gas operations in this state and the express preemption of | ||
| local regulation of those operations. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The legislature finds that the laws and policy of | ||
| this state have fostered successful development of oil and gas | ||
| resources in concert with the growth of healthy and economically | ||
| vibrant communities for over 100 years. The legislature | ||
| acknowledges this cooperative progress and that mutual benefit is | ||
| derived from the statutes already in effect, which provide | ||
| effective and environmentally sound regulation of oil and gas | ||
| operations that is so comprehensive and pervasive that the | ||
| regulation occupies the field, while facilitating the overriding | ||
| policy objective of this state of fully and effectively exploiting | ||
| oil and gas resources while protecting the environment and the | ||
| public's health and safety. The legislature recognizes that in | ||
| order to continue this prosperity and the efficient management of a | ||
| key industry in this state, it is in the interest of this state to | ||
| explicitly confirm the authority to regulate oil and gas operations | ||
| in this state. The legislature intends that this Act expressly | ||
| preempt the regulation of oil and gas operations by municipalities | ||
| and other political subdivisions, which is impliedly preempted by | ||
| the statutes already in effect. | ||
| SECTION 2. Subchapter C, Chapter 81, Natural Resources | ||
| Code, is amended by adding Section 81.0523 to read as follows: | ||
| Sec. 81.0523. EXCLUSIVE JURISDICTION AND EXPRESS | ||
| PREEMPTION. (a) In this section: | ||
| (1) "Commercially reasonable" means a condition that | ||
| would allow a reasonably prudent operator to fully, effectively, | ||
| and economically exploit, develop, produce, process, and transport | ||
| oil and gas, as determined based on the objective standard of a | ||
| reasonably prudent operator and not on an individualized assessment | ||
| of an actual operator's capacity to act. | ||
| (2) "Oil and gas operation" means an activity | ||
| associated with the exploration, development, production, | ||
| processing, and transportation of oil and gas, including drilling, | ||
| hydraulic fracture stimulation, completion, maintenance, | ||
| reworking, recompletion, disposal, plugging and abandonment, | ||
| secondary and tertiary recovery, and remediation activities. | ||
| (b) An oil and gas operation is subject to the exclusive | ||
| jurisdiction of this state. Except as provided by Subsection (c), a | ||
| municipality or other political subdivision may not enact or | ||
| enforce an ordinance or other measure, or an amendment or revision | ||
| of an ordinance or other measure, that bans, limits, or otherwise | ||
| regulates an oil and gas operation within the boundaries or | ||
| extraterritorial jurisdiction of the municipality or political | ||
| subdivision. | ||
| (c) The authority of a municipality or other political | ||
| subdivision to regulate an oil and gas operation is expressly | ||
| preempted, except that a municipality may enact, amend, or enforce | ||
| an ordinance or other measure that: | ||
| (1) regulates only aboveground activity related to an | ||
| oil and gas operation that occurs at or above the surface of the | ||
| ground, including a regulation governing fire and emergency | ||
| response, traffic, lights, or noise, or imposing notice or | ||
| reasonable setback requirements; | ||
| (2) is commercially reasonable; | ||
| (3) does not effectively prohibit an oil and gas | ||
| operation conducted by a reasonably prudent operator; and | ||
| (4) is not otherwise preempted by state or federal | ||
| law. | ||
| (d) An ordinance or other measure is considered prima facie | ||
| to be commercially reasonable if the ordinance or other measure has | ||
| been in effect for at least five years and has allowed the oil and | ||
| gas operations at issue to continue during that period. | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2015. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 40 was passed by the House on April | ||
| 20, 2015, by the following vote: Yeas 125, Nays 20, 1 present, not | ||
| voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 40 was passed by the Senate on May 4, | ||
| 2015, by the following vote: Yeas 24, Nays 7. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: _____________________ | ||
| Date | ||
| _____________________ | ||
| Governor | ||
